Crypto.com gets MVP preparatory license from Dubai regulator
Crypto.com intends to provide a broad variety of institutional services in accordance with regulatory standards after completing the preparatory stage and acquiring an operational license in Dubai.
Crypto.com stated that it has received a preliminary license for a minimal viable product (MVP) from Dubai’s Virtual Asset Regulation Authority (VARA).
After receiving provisional clearance from the Dubai authority in 2022, the exchange received this preparatory phase activities license. During the preparatory stage, the MVP license permits the exchange to meet the requirements for operating within the VARA rules. The guidelines state that no corporation may carry out, or appear to carry out, any virtual asset activity in Dubai through marketing and offers unless permitted and regulated by VARA.
Dubai’s VARA was established in March 2022 and is responsible for regulating, supervising, and overseeing virtual assets and virtual asset activities in all zones throughout the Emirate of Dubai, including special development zones and free zones but excluding the Dubai International Financial Centre.
The MVP phase permits approved licensees to meet all pre-conditions required to conduct MVP market activities under the VARA regime during its preparatory stage. Once the license is activated, Crypto.com will be able to offer virtual asset spot and derivatives instruments. Exchange services, brokerage, margin or leverage trading, and over-the-counter products centered on settlements for institutional investors are examples of possible offerings.
Following a rigorous evaluation of the exchange, Crypto.com was granted the MVP preliminary license, according to the release. Key individuals, governance procedures, anti-money laundering and counter-terrorism financing capabilities, Know Your Customer rules and procedures, ultimate beneficial owner policies and procedures, compliance practices, and cross-border safety measures were all examined.
According to VARA CEO Henson Orser, VARA’s regulatory strategy will be advantageous in building a robust and resilient ecosystem that will create a superior virtual asset market with secure worldwide operations. He determined that integrating companies like Crypto.com will help it achieve its goal of creating a progressive, forward-thinking regulatory system.
Crypto.com has recently expanded its global footprint. Most major markets, including the United Kingdom, France, Italy, and others, have authorized and licensed the exchange. In Brazil, it also got a payment institution license.
Binance previously obtained an MVP license after changing its operational methods and obtaining many regulatory licenses.